Dassault boss considers future in France as tax rises loom

The head of global technology giant Dassault Systemes has become the latest
French business leader to threaten to move abroad because of looming tax
rises.

Bernard Charles, 55, joins a number of Gallic entrepreneurs protesting against the administration of Socialist president Francois Hollande, whose country is heading for a triple-dip recession.Photo: AP

Bernard Charles, 55, joins a number of Gallic entrepreneurs protesting against the administration of Socialist president Francois Hollande, whose country is heading for a triple-dip recession.

In an interview with Le Monde, Mr Charles said he was particularly angry about taxes on share options, which could top 80pc – warning that many of his managers were already leaving.

Asked about a possible move overseas himself, he said: "So far, I have taken no decision and am looking into all aspects of it. But, to be clear, this isn't about plans for a 75pc tax on all earnings above a million euros – even if I do think that tax above a certain level is confiscatory.

"My concern is the increase in the tax on capital, stock options and shares. Allowing managers to be shareholders is their chance to be part of a dream," he added. "Everywhere, even in China, this works, even in the digital sector. We cannot hire the top managers without stock options or performance shares. Not being able to do this, means this part of the dream is broken."

Dassault, which specialises in 3D design software, employs 10,000 people around the world, and has its headquarters on the outskirts of Paris.

Related Articles

Mr Charles, who has been chief executive since 2002, said: "Dassault Systemes is at the heart of the innovation of most industrial products made around the world. I've built up this business over 30 years. Fifteen years ago, we convinced our principal shareholder, Serge Dassault, to be associated with capital.

"I told him: 'You're the owner of the field, and I'm the cultivator. Rather than paying me in bags of wheat, I'd prefer that you gave me a piece of the field, so that we can develop it together."

Mr Charles said: "To obtain a plot of land that is to say, a share in the capital the company and its employees will have to pay in taxes up to 80pc of its value, and that is not tenable. It is normal that transfers of capital are taxed, but beyond 60pc, you are out of the global race.

"If you live elsewhere, you do not experience this problem. As a result, those who benefit from these loyalty schemes are managers abroad, and not those based in France. Residing in France becomes a big handicap. More broadly, our recruitment of top management will be outside of France."

Asked if any of his managers were already leaving, Mr Charles said: "Yes, but I will not tell you how many."

French industrial production dropped by 1.2pc in January, with all signs pointing towards a triple-dip recession.

French multi-millionaire business leaders who have also indicated that they are moving abroad include optician chain tycoon Alain Afflelou. Bernard Arnault, the LMVH boss who is France's richest man, has applied for a Belgian passport, but denied that this was for tax reasons, while Hollywood star Gerard Depardieu has obtained Russian nationality.